The Role of Auditing in Reducing Tax Evasion in Palestine

Abstract

This study aims to examine the role of auditing in reducing tax evasion in Palestine, considering that taxation represents the main source of public revenue and a vital tool for achieving social justice and economic development. The study adopted a descriptive-analytical approach, where a structured questionnaire was distributed to a sample of auditors and accountants in Palestine. Data were analyzed using appropriate statistical methods, including means, standard deviations, and Cronbach’s Alpha for reliability.

The findings revealed a significant role of auditing in minimizing tax evasion, as it contributes to detecting financial loopholes and illegal practices, while enhancing taxpayers’ compliance with their tax obligations. Results also indicated that weak tax legislation, low tax awareness, and prevailing economic and political conditions are among the main factors that encourage tax evasion.

The study concludes that auditing is a strategic tool for promoting tax transparency and increasing public revenues. Based on the results, the study recommends the development of tax legislation, the enhancement of auditors’ competencies, the adoption of modern technologies in auditing, and the intensification of tax awareness campaigns.